industrial investment opportunity kingsway park · oil and gas decommissioning industry with major...

REFURBISHED MULTI-LET INDUSTRIAL PARKSIGNIFICANT RENTAL GROWTH/ASSET MANAGEMENT POTENTIAL

OFFERS OVER £2,100,000 INVITED (NIY 9.61%) REFLECTING LOW CAPITAL VALUE OF ONLY £21.64 PSFWAULT OF 6.1 YEARS TO EXPIRIES / 4.9 years TO BREAKS

HIGHLY PROMINENT POSITION

ON BEHALF OF

KINGSWAY PARKWHITTLE PLACE | DUNDEE | DD2 4US

INDUSTRIAL INVESTMENT OPPORTUNITY

LOCATIONDundee commands a strategic position within the communications network of Scotland with excellent road and rail connections to other principal cities and 90% of the country’s population within 90 minutes drive. Dundee also has its own Airport providing daily scheduled flights to London Stansted.

More specifically, the property is located on the Kingsway (A90), the arterial route between Glasgow/Edinburgh and Aberdeen. The Kingsway also forms Dundee’s bypass and given the significant passing trade, has grown to become a popular commercial destination with Kingsway Retail Park and Camperdown Leisure Park both located close by as well as numerous established industrial estates. Nearby operators include NCR, John Clark Motor Group and UPS.

Dundee is undergoing a substantial regeneration with the city being transformed as part of the Dundee Waterfront scheme including substantial commercial and residential development along the new Victoria & Albert Museum which forms the focal point of the project. Further details are available from www.dundeewaterfront.com. Dundee is also set to become a key centre for the oil and gas decommissioning industry with major recent investment at Forth Ports.

KINGSWAY PARK | WHITTLE PLACE | DUNDEE | DD2 4TDIndustrial Investment Opportunity

Clepington Road

DUNDEE

University of Dundee

DundeeTechnology Park

DunsinaneIndustrial Estate

Cairc ParkGolf Club

Newport-on-Tay

DundeeRiverside Airport

A90

A90 Kingsway

A92

A92

A92

Tay

Street

Riverside Drive

Marketg

ait

Victoria Street

Arbroath Road

Alb

ert S

teet

Fo

rfar

Roa

d

Dens Road

Lochee Road

Lochee

A90

A972

A92

Edinburgh

Glasgow

A90

A85

A923

DryburghIndustrial Estate

Wester GourdieIndustrial Estate

Kingsway Park

Ninewells Hospitaland Medical School

Invergowrie

Denheadof Gray

Kingoodie

Perth Road

EDINBURGH/GLASGOW >

< ABERDEEN


DESCRIPTIONKingsway Park has been created via the extensive regeneration and redevelopment of a former production facility to provide easily adaptable, modern industrial/distribution units which suit a wide variety of uses.

The building has been subdivided to create a number of units varying in size between 6,555 sq. ft. and 20,800 sq. ft. There is in addition, an office unit to the front of the building offering further income potential.

The building is of steel frame and truss roof construction, has an approximate eaves height of 4.2m and is currently sub-divided to create 9 separate units.

The external elevations and roof have been re-clad in profile metal sheeting incorporating translucent roof lights and roller shutter doors to each unit. Internally, each unit has been fitted to suit occupier requirements generally incorporating office and staff welfare accommodation.

The total site extends to 6.4 acres (2.6 hectares) or thereby and includes secure, common shared yard areas and designated car parking.

ADDRESS TENANTUNIT SIZE

(GIA)LEASE START

LEASE END RENT £/PSF COMMENTS

Unit 1 Scot Group Ltd T/A Thrifty 6,555 06/02/2007 05/02/2027 £30,000 £4.60 Rent review and break option 05/02/22

Unit 2Insulated Render Systems (Scotland) Ltd

6,673 15/01/2018 14/06/2018 £18,000 £2.70 Monthly Licence

Unit 3 Lyreco UK Ltd 7,341 08/08/2016 07/08/2021 £30,000 £4.00 Break option 20/02/2019. 6 months’ notice.

Unit 4 KPD Delivery Services Ltd 10,153 28/02/2018 27/02/2023 £25,000 £2.50 Break option 28/02/2021. 6 months’ notice.

Unit 5A Signature Signs (Scotland) Ltd 10,063 04/01/2018 03/01/2023 £20,000 £2.00

Unit 5B Quest Precision Engineering Ltd 20,800 22/01/2018 21/01/2028 £48,000 £2.30 Rent Review 22/01/2023

Unit 6 Diemax Precision Engineering Ltd 10,066 01/09/2014 31/08/2024 £17,500 £1.75 Rent Review 01/09/2019

Unit 7Glow Insulation & Site Supplies Limited

20,692 06/01/2014 05/01/2024 £25,000 £1.20 Rent Review 06/01/2019

Unit 8 VACANT 4,671

TOTAL 97,014 £213,500

The property provides a Weighted Average Unexpired Lease Term (WAULT) of 6.1 years to expiries and 4.9 years to breaks.


TENANCY SCHEDULEThe property is let in accordance with the following tenancy schedule.


ASSET MANAGEMENTKingsway Park offers significant reversionary potential with the opportunity to increase income and asset value through rent reviews, lease re-gearing and letting/further developing the vacant space.

The units are let generally on FRI terms to a mixture of local and national covenants. A service charge is levied on tenants for the upkeep and maintenance of the communal areas on the estate. The current service charge runs at approximately £0.25 psf.

Full details and further information regarding the property along with lease and title documentation is available from the Data Room, with access arranged through the joint selling agents.

SCOTTISH INDUSTRIAL MARKETAppetite for well let industrial investment opportunities in Scotland has increased significantly in the past 12 months with prime yields for multi-let estates in Scotland’s Central Belt commanding yields in the region of 5.50%. The following transactions highlight a notable discount between the quoting price at Kingsway Park and other recent investment sales in the country:

• 119 Clepington Road, Dundee: Multi-let industrial estate including Autosave Components, Whittons (Flooring) Ltd, Jewson and LWS Tiles. Sold in July 2017 for £2.64m reflecting 8% NIY / £62.50 psf

• Firth Road, Houston Industrial Estate, Livingston – Multi-let industrial estate including Hertz and Cannon. Sold in January 2018 for £3.30m reflecting a 8.13% NIY / £43.00 psf

• Almond Court, Falkirk: Multi-let trade counter estate including Saint Gobain Building Distribution Ltd. Sold in January 2018 for £2.25m reflecting a 6.9% NIY / £71.00 psf


VATAll prices, rentals and outgoings are quoted exclusive of, but will be liable for VAT. As such we anticipate the sale will be undertaken as a transfer as a going concern (TOGC).

EPC RATINGThe property has an EPC Rating of C. Copies of EPC Certificates are available from the Data Room.

TERMSWe are instructed to sell our clients absolute interest (equivalent of English freehold) and are seeking offers in excess of £2,100,000, reflecting a low capital value of only £21.64 psf. A purchase at this level would show an attractive Net Initial Yield of 9.61% after standard purchasers costs.

01382 200 064g-s.co.uk KnightFrank.co.uk

0141 221 9191

The Agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representations or warranty whatever in relation to this property. MAY 2018.

FURTHER INFORMATIONFor further information please contact the joint selling agents:

Grant Robertson t: 01382 200064m: 0790 026 [email protected]

Douglas Binnie t: 0141 566 0885m: 07775 561 [email protected]

industrial investment opportunity kingsway park · oil and gas decommissioning industry with major...

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